Diatreme Resources (ASX:DRX) has extended its proposed off-market takeover of Metallica Minerals (ASX:MLM) to 14 June 2024, unless further extended or withdrawn.
In February, Diatreme announced its intention to make an all-scrip takeover bid for Metallica.
If successful, the offer would create an ASX-listed silica sand company with a pro-forma market capitalisation of about $110 million.
Throughout the offer period, Metallica had been advising shareholders to take no action regarding the takeover bid.
In May, Diatreme achieved the minimum acceptance through with a 56.01% stake.
Meanwhile, Metallica Minerals’ Small Shareholder Action Group (SSAG) has increased its shareholding to more than 96.42 million shares, representing a 10.10% interest.
The group of Metallica shareholders rallied together at the end of May to either stop Diatreme’s takeover from going ahead or secure a better offer for smaller investors.
The group first emerged as a substantial shareholder, starting with a combined 5.22% stake in the company.
Metallica Minerals is a silica sand developer focused on its Cape Flattery Project, adjacent to the Cape Flattery Silica Sand mining and shipping operation owned by Mitsubishi Corporation in North Queensland.
Diatreme Resources is an explorer and miner focused on advancing its mineral sands and silica sands projects.
Write to Aaliyah Rogan at Mining.com.au
Images: Metallica Minerals
